Controlled foreign companies (CFC) The CFC rules are applicable to any foreign company controlled by Israeli Shareholders (50% of the shares) and that has accumulated undistributed passive income taxed at a rate below 20%. The Israeli shareholders will be assessed and taxed on their proportionate share of the undistributed income at a rate of 25%. […]

Taxable income Corporate income is assessed on a worldwide basis for resident companies. Non-resident companies are assessed on income that is accrued in or derived from/in Israel. A corporation is considered to be resident in Israel if it is registered and organised under Israeli law or if it has it central management and control in […]